2. Operating assets and liabilities

This section provides additional information on current assets and liabilities that support the ongoing operational liquidity of the Corporation. The section further describes the non-current tangible and intangible assets required at the GF Corporate Companies to provide products and services to their customers. Finally, it provides a summary on the different items of goodwill and the theoretical impact of a capitalization and subsequent amortization of goodwill.

2.1Accounts receivable

2.1.1 Trade accounts receivable

Trade accounts receivable value-adjusted by region

in CHF

2020
2019
Tabelle anzeigen Tabelle ausblenden
Show table Hide table

CHF million

2020

2019

 

 

 

Gross values

580

624

 

 

 

Individual value adjustments

–6

–6

Overall value adjustments

–24

–21

Net values

550

597

 

 

 

Europe

215

235

– Thereof Germany

29

36

– Thereof Switzerland

20

21

– Thereof Rest of Europe

166

178

Americas

73

89

Asia

228

234

– Thereof China

167

166

– Thereof Rest of Asia

61

68

Rest of world

34

39

Total

550

597

As of the balance sheet date, the aging structure of the trade accounts receivable, which are not subject to individual value adjustments, was as follows:

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

 

 

2020

2019

CHF million

Receivable after individual value adjustments

Overall value adjustment

Receivable after individual value adjustments

Overall value adjustment

 

 

 

 

 

Not yet due

445

 

478

1

1 to 30 days overdue

53

 

47

 

31 to 90 days overdue

38

 

49

 

91 to 180 days overdue

22

11

22

6

More than 180 days overdue

16

13

22

14

Total

574

24

618

21

The individual value adjustments amounted to CHF 6 million (previous year: CHF 6 million). It is expected that part of the underlying receivables will be paid. Receivables not due are mainly receivables arising from long lasting customer relationships. Based on experience, GF does not anticipate any significant defaults. For further information on credit management and trade accounts receivable, see note 3.6.

Accounting principles

Accounts receivable are stated at nominal value. Value adjustments for doubtful accounts are established based on maturity structure and identifiable solvency risks. Besides individual value adjustments with respect to specific known risks, other value adjustments are recognized based on historical experience of default risk.

2.1.2 Income taxes receivable

Of the total income taxes receivable of CHF 22 million (previous year: CHF 22 million), CHF 12 million relate to the USA, CHF 3 million each to Austria and Germany, and CHF 1 million each to Switzerland, India, Turkey and to other countries.

2.1.3 Other accounts receivable

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

CHF million

2020

2019

 

 

 

Tax credits from indirect taxes

31

32

Other current accounts receivable

30

25

Total

61

57

2.2Inventories

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

CHF million

2020

2019

 

 

 

Finished goods

468

505

Raw materials and components

208

225

Work in progress

139

180

Gross value of inventories on hand

815

910

 

 

 

Valuation adjustments

–177

–159

Inventories

638

751

Accounting principles

Goods held for trading are generally stated at average cost and internally manufactured products at standard cost, including direct labor and materials used, as well as a commensurate share of the related overhead costs. Cash discount deductions are treated as reductions in the purchase cost. If the net realizable value is lower than the above, a corresponding valuation adjustment is made. Inventories with an insufficient turnover rate are partly or fully value-adjusted.

2.3Liabilities

2.3.1 Other liabilities

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

CHF million

2020

2019

 

 

 

Social security

22

19

Other non-interest-bearing liabilities

26

39

Derivative financial instruments

2

1

Other tax liabilities (e.g. withholding tax)

25

26

Total

75

85

- Thereof current

54

56

- Thereof non-current

21

29

2.3.2 Derivative financial instruments

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

 

 

 

2020

2019

CHF million

Nominal value

Positive market value

Negative market value

Nominal value

Positive market value

Negative market value

 

 

 

 

 

 

 

Underlying

 

 

 

 

 

 

Foreign exchange

291

2

–2

443

5

–1

Total

291

2

–2

443

5

–1

GF uses derivative financial instruments as part of its Corporation-wide risk management. Currency risk from accounts receivable, accounts payable, and financing in foreign currencies are partially hedged. The only hedging instruments employed are foreign currency contracts with a maximum maturity of twelve months. See also note 3.6.

2.3.3 Categories of financial instruments

The following table shows the carrying amount of all financial instruments per category. For details on the market values of the bonds, see note 3.1 (3.1.1 Interest-bearing financial liabilities).

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

CHF million

2020

2019

 

 

 

Financial instruments (assets)

 

 

Cash and cash equivalents (excluding fixed-term deposits)

526

514

 

 

 

Trade accounts receivable

550

597

Fixed-term deposits

308

7

Other accounts receivable 1

30

25

Accrued income

16

19

Other financial assets 2

98

110

Loans and receivables stated at amortized cost

1’002

758

 

 

 

Marketable securities and funds

5

4

Financial assets recognized in income statement at market value

5

4

 

 

 

Derivative financial instruments (receivables)

2

5

 

 

 

Financial instruments (liabilities)

 

 

Trade accounts payable

445

466

Bonds

775

574

Other financial liabilities

180

187

Accrued liabilities and deferred income 3

239

234

Other current/non-current liabilities 4

73

84

Liabilities stated at amortized cost

1’712

1’545

 

 

 

Derivative financial instruments (liabilities)

2

1

1 The balance sheet item "Other accounts receivable" includes tax credits. For more details, see [note 2.1.3] Other accounts receivable.

2 Relates to loans to third parties, security deposits, and long-term-invested securities for the settlement of pension liabilities. For more details, see [note 5.2] Other financial assets.

3 For more details, see [note 2.6.2] Accrued liabilities and deferred income.

4 The balance sheet item "Other current/non-current liabilities" includes derivative financial instruments. For more details, see [note 2.3.1] Other liabilities.

The carrying amount of the marketable securities and funds recognized at their actual value is determined on the basis of the publicly available prices at the balance sheet date. Derivative financial instruments are stated at their market value at the balance sheet date.

2.4Movements in property, plant, and equipment

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

CHF million

Investment properties

Machinery and production equipment

Buildings

Building components

Other equipment

Assets under construction

Land

Assets held under finance leases

Property, plant, and equipment for own use

 

 

 

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

 

 

 

As of 31 December 2020

194

1’446

606

173

238

80

45

24

2’612

 

 

 

 

 

 

 

 

 

 

Additions

 

26

7

3

9

95

1

2

143

Disposals

–1

–35

–24

–9

–10

 

–2

 

–80

Other changes, reclassifications

 

72

32

22

15

–143

 

 

–2

Translation adjustment

–1

–31

–12

–2

–6

–5

–2

–1

–59

As of 31 December 2019

196

1’414

603

159

230

133

48

23

2’610

 

 

 

 

 

 

 

 

 

 

Additions

 

39

13

3

9

132

 

 

196

Disposals

–19

–33

–3

–1

–7

 

 

 

–44

Changes in scope of consolidation

 

–53

 

–3

–5

 

 

 

–61

Other changes, reclassifications

21

58

42

30

27

–178

 

 

–21

Translation adjustment

–6

–38

–12

–2

–5

–3

–1

–1

–62

As of 31 December 2018

200

1’441

563

132

211

182

49

24

2’602

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

 

As of 31 December 2020

–121

–1’004

–307

–84

–176

–1

 

–14

–1’586

 

 

 

 

 

 

 

 

 

 

Additions

–2

–78

–17

–9

–15

 

 

–3

–122

Impairment

 

–4

–1

 

–1

1

 

 

–5

Disposals

 

34

21

8

9

 

 

 

72

Other changes, reclassifications

 

3

 

–1

 

 

 

 

2

Translation adjustment

 

15

3

1

3

 

 

1

23

As of 31 December 2019

–119

–974

–313

–83

–172

–2

 

–12

–1’556

 

 

 

 

 

 

 

 

 

 

Additions

–2

–79

–16

–7

–16

 

 

–3

–121

Impairment

 

–8

–2

 

 

–2

 

 

–12

Disposals

5

32

2

1

6

 

 

 

41

Changes in scope of consolidation

 

39

 

2

3

 

 

 

44

Other changes, reclassifications

–10

15

9

1

–13

 

 

 

12

Translation adjustment

4

26

5

1

3

 

 

1

36

As of 31 December 2018

–116

–999

–311

–81

–155

 

 

–10

–1’556

 

 

 

 

 

 

 

 

 

 

Carrying amount

 

 

 

 

 

 

 

 

 

As of 31 December 2020

73

442

299

89

62

79

45

10

1’026

As of 31 December 2019

77

440

290

76

58

131

48

11

1’054

As of 31 December 2018

84

442

252

51

56

182

49

14

1’046

Additions to property, plant and equipment included investment in equipment in Schaffhausen (Switzerland) in the amount of CHF 11 million, in Zhuozhou (China) in the amount of CHF 4 million and in a new building in El Monte (USA) in the amount of CHF 10 million for GF Piping Systems. Additions for GF Casting Solutions included investment in equipment in Suzhou (China) in the amount of CHF 6 million, the redesign of a plant in Altenmarkt (Austria) in the amount of CHF 7 million as well as ongoing investment into the light metal foundry in Mills River (USA) in the amount of CHF 31 million.

Management assumptions and estimates

The values of non-current assets and intangible assets are reviewed whenever there are indications that their carrying amount may no longer be recoverable, due to changed circumstances or events. If such a situation arises, the recoverable amount is determined. It corresponds to the higher of the discounted value of expected future net cash flows and the expected net selling price. If the recoverable amount is lower than the carrying amount, a corresponding impairment loss is recognized in the income statement. The main assumptions on which these measurements are based include growth rates, margins, and discount rates. The actual future cash flows can differ considerably from discounted projections.

The disposal of buildings includes the sale of a building in the amount of CHF 6 million by GF Machining Solutions in Switzerland, see also note 1.2 (1.2.2 Other operating income).

In the previous year, the movements in the line “Changes in scope of consolidation” result from acquisitions and divestments, explained in more detail in note 4.1 (4.1.2 Acquisitions and divestments).

Land includes CHF 4 million of undeveloped properties (previous year: CHF 4 million).

The overall movements in the line “Other changes, reclassifications” are explained by mold and tooling equipment used at production facilities in China that had to be moved from net working capital to property, plant, and equipment as well as demo machines earmarked for sale reclassified to inventories.

In investment properties, the sale of properties in Schaffhausen (Switzerland) is recorded as a disposal. In the previous year, the sale of properties in Garching (Germany) and in Schaffhausen (Switzerland) was reported. The fair value of investment properties, as determined by internal assessments on the basis of capitalized and current market values, is CHF 98 million (previous year: CHF 112 million).

Impairments amounting to net CHF 5 million (previous year: CHF 12 million) related entirely to the relocation of production from Werdohl (Germany).

Management assumptions and estimates

The values of non-current assets and intangible assets are reviewed whenever there are indications that their carrying amount may no longer be recoverable, due to changed circumstances or events. If such a situation arises, the recoverable amount is determined. It corresponds to the higher of the discounted value of expected future net cash flows and the expected net selling price. If the recoverable amount is lower than the carrying amount, a corresponding impairment loss is recognized in the income statement. The main assumptions on which these measurements are based include growth rates, margins, and discount rates. The actual future cash flows can differ considerably from discounted projections.

Accounting principles

Property, plant, and equipment are stated at cost or manufacturing cost less depreciation and impairment. Financing costs of assets under construction are part of the costs of the asset if material. Assets held under finance lease contracts are capitalized at the lower of the present value of the minimum lease payments and fair value. The related outstanding finance lease obligations are presented as liabilities.

Assets are depreciated on a straight-line basis over their estimated useful lives or lease terms:

  • Investment properties and buildings: 30–40 years
  • Building components: 8–20 years
  • Machinery and production equipment: 6–20 years
  • Other equipment (vehicles, IT systems, etc.): 1–5 years
  • Assets under construction and land are usually not depreciated

When components of larger assets have different useful lives, these are depreciated separately. Useful lives and residual values are reviewed annually on the balance sheet date and adjustments are recognized in the income statement. Any gains or losses on the disposal of items of property, plant, and equipment are recognized in the income statement.

Assets held under the terms of a finance lease are described in note 3.3.

2.5Movements in intangible assets

The major categories of the intangible assets are subdivided into “Land use rights”, “Software”, and “Royalties, patents, others”.

In the period under review, the intangible assets amounted to CHF 36 million (previous year: CHF 34 million).

Land use rights in the amount of CHF 13 million (previous year: CHF 12 million) and royalties, patents, others in the amount of CHF 6 million (previous year: CHF 7 million), remained almost unchanged compared with the previous year.

Software amounted to CHF 17 million (previous year: CHF 15 million). The main reason for this increase was the industrial software and SAP implementation in various companies by GF Piping Systems and GF Machining Solutions.

Goodwill

The theoretical capitalization of the goodwill would affect the result of the consolidated financial statements as follows:

Theoretical movements in goodwill

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

CHF million

2020

2019

 

 

 

Cost

 

 

As of 31 December

615

646

 

 

 

Additions from acquisitions

–1

3

Adjustments

–1

6

Translation adjustment

–29

–18

As of 1 January

646

655

 

 

 

Accumulated amortization

 

 

As of 31 December

–574

–546

 

 

 

Additions regular

–34

–36

Impairment

–21

 

Translation adjustment

27

16

As of 1 January

–546

–526

 

 

 

Theoretical book values, net

 

 

As of 31 December

41

100

As of 1 January

100

129

Effect on income statement

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

CHF million

2020

2019

 

 

 

Operating result (EBIT)

166

235

Return on sales (EBIT margin) %

5.2

6.3

Amortization goodwill

–34

–36

Impairment goodwill

–21

 

Theoretical operating result (EBIT) incl. amortization/impairment of goodwill

111

199

Theoretical return on sales (EBIT margin) %

3.5

5.3

 

 

 

Net profit

112

172

Amortization goodwill

–34

–36

Impairment goodwill

–21

 

Theoretical net profit incl. amortization/impairment of goodwill

57

136

Effect on balance sheet

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

CHF million

2020

2019

 

 

 

Equity according to balance sheet

1’389

1’438

Theoretical capitalization of net book value of goodwill

41

100

Theoretical equity incl. net book value of goodwill

1’430

1’538

 

 

 

Equity as % of balance sheet total

40.3

43.0

Theoretical equity incl. net book value of goodwill as % of balance sheet total (incl. goodwill)

41.0

44.7

Goodwill from acquisitions is offset against the Corporation’s equity at the acquisition date. The theoretical amortization is based on the straight-line method over the useful life of five years. The adjustment in the year under review in the amount of CHF –1 million (previous year: CHF 6 million) is due to the adjustment of conditional purchase prices. The goodwill of Microlution Inc was completely amortized in the year under review. 

Management assumptions and estimates

For goodwill positions, that are listed in the theoretical movements, an impairment test is performed if there is any indication that these goodwill positions could be affected from such an impairment. If such indications exist, an impairment test is performed for the goodwill positions offset against equity to determine the recoverable amount. As a basis for the calculation, business plans for the next five years are used. Subsequent years are included in the calculation using a perpetual annuity with a growth assumption of zero. The projections are based on knowledge and experience as well as on current judgments made by management as to the probable economic development of the relevant markets. It is assumed that there are no significant planned changes in the organization of any of the divisions, except for the measures already decided and announced.

As of the balance sheet date no indications of impairment were found except for the goodwill of GF Urecon Ltd, Coteau-du-Lac (Canada), Global Supply Company LLC, Hallandale (USA) GF Casting Solutions SRL, Pitesti (Romania), GF Precicast SA, Novazzano (Switzerland) and Symmedia GmbH (Germany). These goodwill items were tested for impairment.

By applying the capital asset pricing model, individual costs of capital were calculated. The calculation required an assessment of the relative market risk of different peer groups as well as the determination of specific risk-free interest rates, an equity market risk premiums, the borrowing costs and relevant tax rates.

Since the cash flow projections were based on cash flows after tax, the discount rate has also been determined after tax. The discount rate for GF Urecon Ltd was calculated at 6.7%, for Global Supply Company LLC at 6.8%, for GF Casting Solutions SRL at 10.5%, for GF Precicast SA at 6.7% and for Symmedia GmbH at 8.9%.

The impairment tests for GF Urecon Ltd, Global Supply Company LLC, GF Casting Solutions SRL and Symmedia GmbH revealed that the resulting recoverable amounts based on value in use calculations exceeded the respective carrying amounts. The impairment test for GF Precicast SA showed that the value of the goodwill was not fully supported by the calculated value in use. As a result, an impairment charge on the partial carrying amount of goodwill of CHF 21 million was recorded in the theoretical goodwill reconciliation. GF Precicast SA mainly serves the international aerospace and industrial gas turbine markets. The partial impairment of the goodwill was triggered by the strong decrease in demand for aircraft engine parts. While a recovery in this market is expected, there is a greater level of uncertainty regarding the timing and magnitude of the recovery. GF has assumed a more conservative recovery compared to other key industries. In addition, the industry has also demonstrated relatively longer lead times. The relatively more conservative assumption on the recovery negatively affected the value-in-use calculation. While the theoretical goodwill was partially impaired, the carrying amounts of all other assets are still considered recoverable. An increase in the discount rate from 6.7% to 7.7% would have resulted in an additional impairment of CHF 13 million. As the terminal growth rate was assumed to be 0%, it was not further reduced for the purpose of sensitivity analysis. Even under the assumption of the higher discount rate, the other assets would still be considered recoverable.

Management assumptions and estimates

For goodwill positions that are listed in the theoretical movements, an impairment test is performed if there is any indication that these goodwill positions could be affected from such an impairment. If such indications exist, an impairment test is performed for the goodwill positions offset against equity to determine the recoverable amount. As a basis for the calculation, business plans for the next five years are used. Subsequent years are included in the calculation using a perpetual annuity with a growth assumption of zero. The projections are based on knowledge and experience as well as on current judgments made by management as to the probable economic development of the relevant markets. It is assumed that there are no significant planned changes in the organization of any of the divisions, except for the measures already decided and announced.

Accounting principles: intangible assets

Acquired licenses, patents, and similar rights are capitalized and, with the exception of land use rights, amortized on a straight-line basis over their estimated useful lives of 3 to 15 years. Land use rights are amortized over the duration of the usage rights granted. For this item, useful lives can be up to 50 years. Software is amortized on a straight-line basis over the estimated useful lives of 1 to 5 years.

In the event of business combination, goodwill as of the date of acquisition is calculated as follows: the acquisition price plus transaction costs incurred in connection with the business combination less the value of the acquired and re-valued net assets on the balance sheet.

The positive or negative goodwill resulting from acquisitions and changes in ownership are offset in equity against retained earnings at the date of acquisition. Upon the disposal of a GF Corporate Company, the goodwill previously offset in equity is transferred to the income statement. If parts of the purchase price are dependent on future results, they are estimated as accurately as possible at the acquisition date and recognized in the balance sheet. In the event of disparities when the definitive purchase price is settled, the goodwill offset in equity is adjusted accordingly.

The carrying amount of non-current assets (especially property, plant, and equipment, intangible assets, financial assets as well as the goodwill reported in the sample accounting) is reviewed at least once a year. If there is any indication of an impairment, an impairment test is performed immediately. If the carrying amount exceeds the recoverable amount, an impairment loss is recognized in the income statement. As the goodwill is already offset in equity at the date of the acquisition, an impairment of the goodwill does not affect the income statement, but leads to a disclosure in the notes only.

Accounting principles: research and development

All research costs are recognized in the income statement in the period in which they were incurred. Development costs are recognized as an asset only to the extent that the following specific recognition criteria are all met cumulatively:

  • costs are clearly defined, clearly attributable to the product or process, and can be separately identified and measured reliably
  • the technical feasibility can be demonstrated
  • the company intends to produce and market the product or to use the process
  • a market exists
  • the required internal resources are available
  • the amount recognized is covered by future cash flows
2.6Movements in provisions, accrued liabilities and deferred income and contingent liabilities

2.6.1 Movements in provisions

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

CHF million

Personnel and social security

Warranties

Legal

Onerous contracts

Restructuring

Other

Provisions

Deferred tax liabilities

Provisions and deferred tax liabilities

 

 

 

 

 

 

 

 

 

 

As of 31 December 2020

56

39

7

9

12

17

140

49

189

 

 

 

 

 

 

 

 

 

 

Increase

4

20

6

5

13

 

48

12

60

Use

–3

–12

–10

–2

–15

–7

–49

 

–49

Release

–1

–4

–2

–2

–1

–1

–11

–19

–30

Translation adjustment

 

–2

–1

 

 

 

–3

–2

–5

As of 31 December 2019

56

37

14

8

15

25

155

58

213

 

 

 

 

 

 

 

 

 

 

Increase

7

22

2

4

15

8

58

5

63

Use

–4

–12

–4

–4

 

–1

–25

 

–25

Release

–2

–5

–2

–8

 

–3

–20

–8

–28

Changes in scope of consolidation

–5

 

 

 

 

 

–5

–2

–7

Translation adjustment

–2

–1

 

 

 

1

–2

 

–2

As of 31 December 2018

62

33

18

16

 

20

149

63

212

 

 

 

 

 

 

 

 

 

 

Maturity structure of the provisions 2020

 

 

 

 

 

 

 

 

 

– current

4

29

1

6

12

5

57

 

57

– non-current

52

10

6

3

 

12

83

49

132

 

 

 

 

 

 

 

 

 

 

Maturity structure of the provisions 2019

 

 

 

 

 

 

 

 

 

– current

4

24

1

5

7

11

52

 

52

– non-current

52

13

13

3

8

14

103

58

161

Personnel and social security

Includes provisions for employee retirement benefits and other service-related employee benefits which are not provided by pension funds or similar institutions as well as anniversary bonuses and provisions for work accidents. For employee benefits provided by pension funds refer to note 5.1.

Warranties

Cover expected expenses for warranty benefits such as repairs and replacements. All three divisions provide warranty benefits to their customers: 26% to GF Piping Systems (previous year: 20%), 44% to GF Casting Solutions (previous year: 40%) and 30% of the provisions relate to GF Machining Solutions (previous year: 40%).

Legal

Includes all obligations deriving from legal cases and litigations. None of the individual provision should lead to an outflow of more than CHF 5 million (previous year: CHF 10 million).

Onerous contracts

Summarizes contracts for which the fulfillment leads to unavoidable costs that exceed the associated economic benefits. Onerous contracts concern mainly GF Casting Solutions.

Restructurings

Summarizes provisions for legal and or constructive obligations deriving from restructurings. A constructive obligation arises when a detailed and formal plan for a restructuring exists and a valid expectation in those affected by the restructuring was raised. The increase and usage in provision is related to restructuring and relocation activities in Europe.

Other

Includes all other events that give raise to a provision such as non-warranty claims by customers and risks from business activities not allocated to warranties, legal or onerous contract category.

Management assumptions and estimates

In the course of their ordinary operating activities, GF Corporate Companies can become involved in litigation. Provisions for pending legal proceedings are measured on the basis of the information available and a realistic estimate of the expected outflow of resources. The outcome of these proceedings may result in claims against the Corporation that cannot be met or cannot be met in full through provisions or insurance cover. If there are any contractual obligations for which the unavoidable costs of meeting the obligations exceed the expected economic benefits (e.g. onerous delivery contracts), provisions are made for the agreed amounts over the entire period or over a prudently estimated period. These provisions are based on management assumptions.

Accounting principles

The valuation of provisions in all categories is based on actual data if available (e.g. claims that have occurred or been reported) or on the experience of recent years and management estimates. The deferred tax liabilities are based on temporary valuation differences, which are reported in the balance sheet at the level of GF Corporate Companies.

Management assumptions and estimates

In the course of their ordinary operating activities, GF Corporate Companies can become involved in litigation. Provisions for pending legal proceedings are measured on the basis of the information available and a realistic estimate of the expected outflow of resources. The outcome of these proceedings may result in claims against the Corporation that cannot be met or cannot be met in full through provisions or insurance cover. If there are any contractual obligations for which the unavoidable costs of meeting the obligations exceed the expected economic benefits (e.g. onerous delivery contracts), provisions are made for the agreed amounts over the entire period or over a prudently estimated period. These provisions are based on management assumptions.

2.6.2 Accrued liabilities and deferred income

Tabelle anzeigen Tabelle ausblenden
Show table Hide table

CHF million

2020

2019

 

 

 

Overtime, holiday, bonuses, and sales-related premiums

95

94

Accrued liabilities/deferred income for commissions and discounts

43

34

Accrued liabilities/deferred income for annual audit fees

5

4

Other accrued liabilities and deferred income

96

102

Total

239

234

2.6.3 Contingent liabilities

Contingent liabilities amounted to CHF 90 million (previous year: CHF 81 million) and include guarantees to third parties. In 2020, GF sold all remaining interests in related parties. As a result, former guarantees to related parties in favor of third parties became guarantees to third parties. The amount of guarantees to former related parties in favor of third parties at year end was CHF 86 million (previous year: CHF 76 million). 

https://annual-report.georgfischer.com/20/en/wp-json/public/posts/